Chamberlin PLC (AIM:CMH), the specialist castings and engineering group, has announced its final results for the year ended 31 May 2022, which show a return to profitability for the first time in over five years.
The company saw its full-year 2022 group operational performance significantly improve compared to the prior period, delivering a 79% increase in adjusted EBITDA and a full-year profit after tax of £0.1mln (14 months to 31 May 2021: £9.6mln loss) demonstrating the significant progress made in 2022.
Chamberlin said the journey to a full recovery in its operational performance and financial standing has begun extremely well and the financial results for 2022 are evidence of the progress made with all of the operating divisions making substantial improvements to their performance compared to the prior financial period, although progress at CHC has been slower than anticipated.
It noted: "The overall economic outlook for global markets remains uncertain, but the board is pleased to report that all three operating divisions have made a positive start to the new financial year.
"At the present time, demand across all of the group's businesses remains buoyant driven in particular at CHC and RDC by an increasing trend towards UK on-shore supply. This has contributed to higher-than-expected levels of orders for Q1 FY 2023 and strong ongoing order books."
In a statement, Kevin Price, Chamberlin's chief executive commented: "The group has been able to successfully navigate its way through these issues to deliver a significant improvement in financial performance and to place the group on a solid financial base from which our strategic plans for growth can be delivered."
Chamberlin pointed out that full-year 2022 revenue of £16.8mln (14 months to 31 May 2021: £26.4mln) was 26% lower than the prior year on a pro-rata basis reflecting the loss of BorgWarner Turbo Systems Worldwide contracts in 2021 and headwinds in the automotive sector. Encouragingly, however, revenues at Russell Ductile Castings (RDC) and Petrel increased by 20% and 21% respectively on a pro-rata basis, the company added.
Gross profit margin increased to 10.7% from 8.3% in 2021 reflecting a recovery in the performance of the company's Foundry division, which reduced its operating loss to £0.5mln from a £1.9mln loss in the previous period, and a substantial increase in operating margin at Petrel in the Engineering division.
The company highlighted a significant reduction in its underlying operating loss to £0.7mln (14 months to 31 May 2021: £2.9mln loss) driven by improvements across all divisions, but most significantly, by the record profits at RDC and Petrel.